AIXTRON Investor Presentation. IR Presentation H1/2015 (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US )

Transcription

1 AIXTRON Investor Presentation IR Presentation H1/2015 (FSE: AIXA, ISIN DE000A0WMPJ6, NASDAQ: AIXG, ISIN: US ) AIXTRON Investor Relations, September 2015

2 AIXTRON INVESTOR PRESENTATION 2 Forward-Looking Statements This document may contain forward-looking statements regarding the business, results of operations, financial condition and earnings outlook of AIXTRON within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of These statements may be identified by words such as may, will, expect, anticipate, contemplate, intend, plan, believe, continue and estimate and variations of such words or similar expressions. These forward-looking statements are based on our current views and assumptions and are subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Actual results and trends may differ materially from those reflected in our forward-looking statements. This could result from a variety of factors, such as actual customer orders received by AIXTRON, the level of demand for deposition technology in the market, the timing of final acceptance of products by customers, the condition of financial markets and access to financing for AIXTRON, general conditions in the market for deposition plants and macroeconomic conditions, cancellations, rescheduling or delays in product shipments, production capacity constraints, extended sales and qualification cycles, difficulties in the production process, the general development in the semi-conductor industry, increased competition, fluctuations in exchange rates, availability of public funding, fluctuations and/or changes in interest rates, delays in developing and marketing new products, a deterioration of the general economic situation and any other factors discussed in any reports or other announcements field by AIXTRON with the U.S. Securities and Exchange Commission. Any forward-looking statements contained in this document are based on current expectations and projections of the Executive Board and on information currently available to it and are made as at the date hereof. AIXTRON undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, unless expressly required to do so by law.

3 ABOUT AIXTRON Who we are 3 Headquarters based in Herzogenrath, Germany Worldwide presence with 12 sales/representatives offices and production facilities Company founded in 1983 over 30 years of experience ~760 employees Technology leader in deposition systems More than 3,000 deposition systems delivered all over the world State of the art R&D center and demo facilities Annual R&D budget of approx Million

4 AIXTRON TECHNOLOGIES 4 Our Technology. Your FUTURE. Compound Semiconductors Silicon Semiconductors LED Lighting Memory & Logic Organic Carbon OLED Power Management

5 1Q98 2Q98 3Q98 4Q98 1Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 OPERATIONS 5 Equipment Order Intake per Quarter Source: Deutsche Bank Equity Research, AIXTRON SE 250 (EUR million) driven by strategic China investments driven by LED TV driven by telecom/datacom and mobile phone driven by mobile phone penetration driven by notebook backlighting Compound Semiconductor Market China Investments

6 INDUSTRY & MARKETS 6 LED Lighting Market: Multiple Tipping Points Source: : AIXTRON, McKinsey 2012 LED Lighting Cycle Various Applications Different Regions Numerous Players

7 AIXTRON TECHNOLOGIES AND PRODUCTS Our Technology Portfolio 7 Compound Semiconductors Silicon Semiconductors Organic Carbon MOCVD ALD/MOCVD OVPD /PVPD /TFE PECVD LEDs, Lasers and Optoelectronics Power Management GaN / SiC Silicon Semiconductors Organic Electronics Graphene, CNTs and CNWs LEDs for display: TVs, mobile phones, tablets, etc. LEDs for lighting LEDs for automotive LEDs for datacom Lasers for telecom, consumer electronics Photovoltaics RF transistors AC-DC converters DC-DC converters Solar inverters Motor drives in industrial applications automotive and consumer electronics DRAM Dielectric and Metal Electrode Flash Inter Poly Dielectric and Metals Logic Gate stack ReRAM and PCRAM Active element and Electrode Logic High Mobility Channel OLEDs for display: TVs, mobile phones, tablets, etc. Thin Film Encapsulation OLEDs for lighting Organic, flexible electronics Organic Photovoltaics Transistors Interconnects Flexible Electronics Energy Storage Sensors, etc. Increasing Equipment Demand Expected by: 2015 Increasing Equipment Demand Expected by: 2015/2016 Increasing Equipment Demand Expected by: 2015 Increasing Equipment Demand Expected by: 2016/2017 Increasing Equipment Demand Expected by: Beyond 2018

8 FINANCIALS 8 H1/2015 Financial Highlights Sales: Volume below expectations due to delays in AIX R6 shipments Gross Margin: Lower than expected due to impact from AIX R6 qualification process OPEX on track: EUR 39.1m (target run-rate around EUR 80m on an annual basis) Solid Cash Position: EUR 255.4m as of June 30, 2015 (EUR 268.1m as of Dec 31, 2014) Order Backlog: EUR 91.2m as of June 30, 2015 (EUR 69.0m as of Jan 1st, 2015)

9 FUTURE MARKETS 9 Market Prospects Short-Term Further increasing adoption of LEDs for exterior, public infrastructure & commercial lighting Increased adoption of LEDs for consumer & residential lighting Market positioning of the new AIX R6 MOCVD tool for LED manufacturing Increasing adoption of GaN for power electronics Increased emergence of silicon carbide (SiC) hybrid automotive & photovoltaic applications Next generation NAND, DRAM & PRAM memory applications Mid- to Long-Term Development of organic semiconductors applications using efficient deposition and thin-film encapsulation technologies Development of GaN-on-Si based power electronics or LEDs Further development of plastic electronics/flexible TFT backplanes Increased development for specialized compound solar cells Higher demand for High-k as well as interconnect components Progress in the convergence of compound material applications, e. g. substituting materials in the silicon semiconductor industry Development of applications using carbon nanostructures including graphene

10 AIXTRON INVESTOR PRESENTATION 10

11 AIXTRON TECHNOLOGIES AND PRODUCTS 11 Technology Position MOCVD for Power Management MOCVD for LEDs, Lasers and Optoelectronics MOCVD for III-V on Silicon ALD for Memory Customer B & C ALD for Memory Customer A OVPD for OLED deposition Carbon Thin-Film Encapsulation for OLED R&D Demo &Qualification Pilot Production High Volume Production

12 2014e 2015e 2016e 2017e 2018e 2014e 2015e 2016e 2017e 2018e HB LED Market (bn units) HB LED Market (2" Equivalent Wafer in 000) INDUSTRY & MARKETS 12 Increasing LED Area Demand Driving Growth Growth through increasing LED-unit and area demand Consistent epitaxial area growth will trigger equipment demand LED-lighting gaining further momentum LED Units 2 Equivalent Wafer ,000 50, ,000 30, ,000 10, Mobile & Others Display Lighting Mobile & Others Display Lighting (0.1mm²) (0.25mm²) (0.75-1mm²) Based on compilation of latest opinions by: DisplaySearch; Strategies Unlimited; Displaybank; Gartner Dataquest; IMS Research.; McKinsey Lighting Report

13 Incremental HB LEDs (bn units) Incremental HB LEDs (2" Equivalent Wafer in 000) Required number of MOCVD reactors INDUSTRY & MARKETS 13 Production Supply 3rd Party Estimates for HB LEDs Analysts Bull-Bear MOCVD system demand estimates Larger area and future replacement to drive equipment demand SSL is the strongest driver for material area growth Incremental LED units and area growth every year Incremental LED Units Incremental Material Area 10 7, , ,000 4,000 3,000 2, , e 2015e 2016e 2017e 2018e e 2015e 2016e 2017e 2018e 0 Incremental HB LEDs - Units Incremental HB LEDs - Area (LHS) MOCVD Systems - Bear (RHS) MOCVD Systems - Bull (RHS) Based on compilation of latest opinions by: Strategies Unlimited; DisplaySearch; Gartner Dataquest; IMS Res; McKinsey Lighting Report; Baader Bank; Bankhaus Lampe; Berenberg; Canaccord Genuity; CLSA; Commerzbank; Deutsche Bank, DZ Bank; Exane BNP; Goldman Sachs; JG Capital; JP Morgan; Liberum; Morgan Stanley; Needham; Susquehanna; UBS

14 AIXTRON TECHNOLOGIES AND PRODUCTS 14 Compound Semiconductors Power Electronics Consumer Electronics & IT Automotive Energy Industrial Power Management Power Switching 30V 600V 1.2 kv 2kV Electronic appliances Computing Wireless charging Power supplies PFC Infotainment GPS Connected car Autonomous driving EMI/EMC Adaptive cruise control General Automotive Electronics HEV/EV Charging stations Inverter / motor drives Converter Radar test applications Power Grid / Smart Meter / Appliances Solar / Wind inverters Solar / Wind Power DC distribution Power Storage UPS UPS Industrial machines Building Mining, oil, gas power generation Shipping/Rail GaN GaN / SiC SiC Volume segment Niche segment

15 AIXTRON TECHNOLOGIES AND PRODUCTS 15 Compound Semiconductors MOCVD System Generations Two Reactor Technologies Planetary Reactor & Close Coupled Showerhead (CCS) Extendibility: Extensive choice of configurations and enhancements Scalability: Multiple technologies on one platform Productivity: Highest throughput, best yield, fastest growth rates Year of Introduction Technology Chambers / 2011 G3 Planetary 19x2 CCS G4 HT Planetary CRIUS CCS G5 HT Planetary CRIUS II-eXL CCS 24x2, 8x4 19x2 42x2, 11x4, 6x6 31x2, 12x3, 7x4, 3x6, 1x12 56x2, 14x4, 8x6, 5x8 75x2, 19x G5+ HT Planetary 5x8 GaN-on-Si Technology 2014 G5 WW AIX R6 12x4, 8x6 121x2, 31x4, 12x6

16 AIXTRON TECHNOLOGIES AND PRODUCTS 16 Compound Semiconductors MOCVD Two Reactor Technologies Planetary Reactor & Close Coupled Showerhead (CCS) Addressing multiple industries Established industry standard & market leading Configurable, extendable common platform Introduced the latest MOCVD technology - AIX R6 Planetary Reactor AIX G5+, 5x8 Close Coupled Showerhead AIX R6, 31x4 Unique Planetary reactor design Horizontal reactor type Patented CCS Technology Vertical reactor design

17 AIXTRON TECHNOLOGIES AND PRODUCTS 17 Organic Electronics OVPD + Encapsulation OLED manufacturing process Source: DisplaySearch, AIXTRON Cleaning ITO deposition Coating Cleaning Organic material deposition Glass cutting Bonding Etching Stripping Test and repair Cathode deposition Encapsulation Aging Final test Front-end Array process equipment Front-end Cell process equipment Back-end Module process equipment Targeted technology

18 AIXTRON TECHNOLOGIES AND PRODUCTS 18 Organic Electronics Front-end Process Equipment Focus Activities Key competency: Thin-film deposition Value creation: 60% Cumulative Capex 100% Source: IHS; AIXTRON internal estimates 80% 75% 55% 45% 5% 40% 10% 20% 5% 20% Cleaning Deposition Cathode deposition Encapsulation Module preparation Automation

19 AIXTRON TECHNOLOGIES AND PRODUCTS Organic Electronics OVPD 19 Product Description OVPD Proprietary carrier-gas enhanced gas phase deposition approach for organic thin films Based on AIXTRON s core competence of carrier gas enhanced vapor phase deposition Free scalability: suitable for all relevant substrate generations Manufacturing technology applicable for OLED displays, OLED lighting, organic semiconductors, and organic photovoltaic Disruptive deposition technology for cost efficient OLED manufacturing Product Features High deposition rates for high throughput Reduced thermal stress for organic materials High material utilization efficiency Flexible process control Simplified scaling due to Close Coupled Showerhead and Decoupled source technology Flexible integration solutions for batch and inline Reduced number of deposition chamber and footprint

20 AIXTRON TECHNOLOGIES AND PRODUCTS Carbon Nanostructures PECVD 20 Graphene and Carbon Nanotube Deposition Systems Proprietary thermal and plasma enhanced chemical vapour deposition technology Excellent uniformity and reproducibility with fast turnaround cycle times BM platform: BM R&D (2-inch), BM Pro (4-inch and 6-inch), BM GB (4-inch glovebox), BM HT (high temperature, 1,700C), BM300T (300mm) Graphene and carbon nanotube films for electronics, energy storage, thermal management, sensors and flexible/transparent applications Product features Fast response heater and turnaround Material Properties AIXTRON Technology Enabling Applications Thermal CVD Substrate and top heating Closed loop infrared wafer temperature control Plasma enhanced CVD with frequency control Flexible processing for different applications Low cost of ownership Easy maintenance and cleaning User management features and growth library Graphene (2D) and Carbon nanotube (1D) Unique combination of high electrical/ thermal conductivity, mobility, flexibility and transparency Serving R&D market today AIXTRON BM Pro Production ready for tomorrow AIXTRON BM300T

21 AIXTRON TECHNOLOGIES AND PRODUCTS Silicon Semiconductors ALD 21 Product Description ALD 300mm ALD Technology QXP-8300 Mini-batch system High throughput : 2 Process Chambers 8 stations Up to 3 vaporizers and one bubbler Applications : DRAM, Logic and Flash High k Dielectric Metal electrode : ReRAM and PCRAM Active elements Proven in HVM with >40% lower CoO and >90% Uptime in DRAM and Flash Fabs Best-in class technology, state of the art deposition system, lowest CoO Product Features Up to 3 patented TriJet vaporizers Small volume confined process space ensure short ALD cycle time > 40 % less precursor consumption Efficient purge Isolated multi wafer processing with > 40% higher throughput Close Coupled Showerhead for uniform distribution Flexibility and ease of maintenance

22 AIXTRON TECHNOLOGIES AND PRODUCTS Silicon Semiconductors ALD and MOCVD Benefits ALD and MOCVD Multi generation film development for Memory and Logic Advanced technology nodes require high productivity ALD equipment Introduction of new materials drives ALD and MOCVD processes 22 Source: Gartner 2015 Silicon ICs: Decade of Materials CNT Graphene III-Vs /Si AIXTRON Positioning Rapid growth in advanced tech nodes (2014: Indexed=100) CAGR: 37% Transistor gate length 22 ReRAM High-k dielectrics Metal Gates nanometers 5 R&D HVM CAGR: 2% Worldwide Fab Capacity all nodes e Worldwide Fab Capacity 22nm

23 OPERATIONS 23 Revenue Analysis H1/2015: by equipment & spares H1/2015: by end application (equipment only) H1/2015: by region 11% 10% 28% 14% 24% 11% 19% 32% 72% 79% Equipment Spares LED Silicon Power Electronics Optoelectronics Others Asia Europe Americas

24 FINANCIALS Consolidated Income Statement* 24 ( million) H1/15 H1/14 Restated +/- Q2/15 Q1/15 +/- Revenues % % Cost of sales % % Gross profit % % Gross Margin 15% 25% 1-10 pp 9% 22% -13 pp Selling expenses % % General & admin expenses % % R&D % % Net other op.(income)/expenses % % EBITDA % % EBIT % % EBIT Margin -33% -24% -9 pp -44% -22% -22 pp Result before tax % % Pre-Tax Margin -33% -23% -10 pp -44% -21% -23 pp Net result % % Net Return on Sales -34% -26% -8 pp -45% -23% -22 pp *) rounded figures; may not add up 1) Restated; please refer to Accounting Policies in H1-Report

25 Financials Consolidated Statement of Financial Position* 25 ( million) 30/6/15 31/12/14 30/6/14 Property, plant & equipment Goodwill Other intangible assets Others Non-current assets Inventories, WIP & Finished Goods Trade receivables Others Cash & Cash Equivalents incl. CD Current Assets Shareholders' equity Non-current liabilities Trade payables Advance payments from customers Others Current liabilities Balance Sheet total *) rounded figures; may not add up

26 FINANCIALS Consolidated Statement of Cash Flows* 26 ( million) H1/15 H1/14 Q2/15 Q1/15 Cash Flow from operating activities Cash Flow from investing activities Cash Flow from financing activities Exchange rate changes Net change in Cash & Cash Equivalents Cash & Cash Equivalents (beginning of period) Cash & Cash Equivalents (end of period) Change in Cash deposits Free Cash Flow Capex *) rounded figures; may not add up 1) Operating CF + Investing CF + Changes in Cash Deposits, adjusted for acquisition effects (upfront payments and loan)

27 Thank you very much for your attention. AIXTRON SE Dornkaulstr Herzogenrath Germany Phone +49 (2407) Fax +49 (2407) invest@aixtron.com